Bold Call Of The Day – Microsoft

UBS just initiated coverage of Microsoft with a ‘buy’ rating. Although the stock has soared about 50% over the last 6 months analyst Brent Thill thinks shares still have room to run.

He has a $34 price target on the stock largely because he expects Microsoft to be a big beneficiary of a PC upgrade cycle, which he estimates is coming in 2010.

In other words, Thill believes there’s pent up demand in Corporate America because companies have been reluctant to spend on IT this year. However, he thinks the release of Windows 7 will be the catalyst to trigger new tech spending, as companies upgrade their operating systems to make themselves more efficient.

In fact, Thill expects PC and server sales to increase by as much as 10% next year – with that trend giving software sales a boost, broadly. Although Microsoft is the biggest beneficiary it’s also worth noting Thill has buy ratings on Autodesk, Oracle and Adobe, according to Barron's.

______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

For Joe TerranovaTerranova Works For (VRTS)Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.Virtus Investment Partners Owns More Than 1% Of (CLB)Virtus Investment Partners Owns More Than 1% Of (DLR)Virtus Investment Partners Owns More Than 1% Of (EXR)Virtus Investment Partners Owns More Than 1% Of (IGE)Virtus Investment Partners Owns More Than 1% Of (XLY)Virtus Investment Partners Owns More Than 1% Of (DBC)Virtus Investment Partners Owns More Than 1% Of (DBV)Virtus Investment Partners Owns More Than 1% Of (UA)

For Steve Grasso:Stuart Frankel And Its Partners Own (CMCSK)Stuart Frankel And Its Partners Own (CUBA)Stuart Frankel And Its Partners Own (GERN)Stuart Frankel And Its Partners Own (HSPO)Stuart Frankel And Its Partners Own (NWS.A)Stuart Frankel And Its Partners Own (NXST)Stuart Frankel And Its Partners Own (NYX)Stuart Frankel And Its Partners Own (PDE)Stuart Frankel And Its Partners Own (PRST)Stuart Frankel And Its Partners Own (RDC)Stuart Frankel And Its Partners Own (ROK)Stuart Frankel And Its Partners Own (TLM)Stuart Frankel And Its Partners Own (XRX)Stuart Frankel And Its Partners Own (SDS)Stuart Frankel And Its Partners Are Short (QQQQ)Stuart Frankel And Its Partners Are Short (CL)

For Todd GordonGAIN Capital's Managed Accounts Own Australian Dollar, Are Short U.S. Dollar

For Brent Thill(MSFT) Is Or In Past 12 Months Has Been An Investment Banking Client Of UBS Securities LLC(MSFT) Is Or In Past 12 Months Has Been A Non-Securities Client Of UBS Securities LLCUBS Securities LLC Has Received Compensation From (MSFT) In Past 12 Months